Leaders defend move to sell Smith house to lowest bidder

CITY leaders today defended their decision to accept the lowest bid for the house where economist Adam Smith lived in his final years.

An £800,000 bid from Heriot-Watt University's Edinburgh Business School to buy Panmure House has been approved by councillors.

The house, which dates from 1691, is set to be converted into a study centre for business and economics, and will include a library of early works of Smith and other Enlightenment figures.

However, a higher bid was received for Panmure House from city resident Laura Strong, who offered £955,000 and planned to restore the building with the help of award-winning conservation architect Nicholas Grove-Raynes.

City finance leader Gordon Mackenzie said: "It is clear from legal advice that the decision taken is in the best interests of the city."

Heriot-Watt's principal and vice-chancellor, Anton Muscatelli, added: "We are very encouraged by the council's decision to accept our bid and now hope for a decision by the Scottish Government which will approve our purchase."